| RMB has a bright future |
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| Friday,April 24,2009 Posted: 03:41 BJT(1941 GMT) |
| From:Xinhua News Article type:Reproduced |
Xinhua -- China's currency RMB will play a more important role globally, said Kazakh president's former prime economic advisor Tuesday.
"I fully trust the RMB and believe it will have a brighter future in the international monetary circulation," South Korea-born American economist Dr. Chan Young Bang said in an interview with Xinhua.
Bang, founder and now president of Kzazakhstan Institute of Management, Economics and Strategic Research (KIMEP), said China has a vast population and a fast growing economy, its legal currency RMB is playing a more and more important role in the world.
Thanks to its tightness and controllability, China's banking system suffered far less impact than its western counterparts in this global financial crisis.
He said the first crucial factor for a currency to become an international settlement or reserve currency is that its value must be stable. The transparency of its circulation and exchange system is also essential. Countries like Russia, Kazakhstan, South Korea and Argentina have signed agreements with China on border trade with home currency settlement or bilateral currency exchange, which demonstrates that the internationalization of the RMB is on a healthy and orderly track, he added.
"I quickly adjusted my currency deposit structure after the eruption of the global financial crisis," Bang told Xinhua, "I cut70 percent of my U.S. dollar savings and increased RMB account dramatically."
Bang suggested that in the RMB's internationalization process, China should on one hand strengthen its regulation and supervision of its financial system, increase the transparency of the RMB's functioning system, and on the other hand promote its domestic consumption, enhance economic vitality, and shoulder greater responsibility for the RMB's long-term growth in the global market. |
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